We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Fixed costs

What are fixed costs?

Fixed costs are business expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance. These costs have to be paid regardless of the company's level of output.

Understanding fixed costs is crucial for budgeting and pricing decisions. They are an essential part of break-even analysis, which determines the sales volume needed to cover total costs and begin making a profit. High fixed costs require a business to maintain a higher level of sales to remain profitable.

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.